TRUE CAPITAL, CHARACTER & Joe the Plumber

“I've never been able to understand why a Republican contributor is a 'fat cat' and a Democratic contributor of the same amount of money is a 'public-spirited philanthropist'.” --President Ronald Reagan

The Final 2008 Presidential Debate: Last night I stayed awake for most the Presidential debate. I was wide awake during all comments about “Joe the plumber.” I have to say that Joe the aspiring business owner from Ohio stole the show and, of course I connected with it, because I have been an “average Joe.”

Obama’s blunder: Senator Obama may have lost the election because of just an average Joe, and now must regret talking to the plumber from Ohio. Answering a question that he was interested in “spreading” Joe’s “wealth around” if he made over $250,000 a year was like revealing he was going to play "Robbing" Hood on the middle class job creator. Days ago paying higher taxes was called “…time to be patriotic” by another “Joe;” Senator Biden, Obama running mate.

America’s Joe from Ohio uncovered the hidden truth about Obama and Biden’s redistribution of wealth plan and showed how out of touch they are with small business owners, and what constitutes wealth in middle America. He asked a simple question about taxes and found out that his “dreams of wealth” could not be achieved unless he “spread” his gains around; courtesy of the Obama Administration hopefuls. With all the costs of doing business, including payroll contributions, worker’s comp insurance premiums, liability insurance premiums, expansion capital, etc. $250,000 is HARD EARNED, and can be lost overnight without extreme business oversight and diligence.

I KNOW JOES' DREAM: I was a small builder that started a construction business with $900 dollars severance from a Police Dept. in May 1984 with a need to care for a young family, and a desire to make something of myself. I was constantly struggling to do all the work I could physically do to keep control of quality and dollars in our pocket. It was extremely difficult. If I had known what I was in for, especially with regards to six day work weeks, 12 hours a day for twelve years, and then losing nearly one million in California real estate and other business value during a deep real estate recession of 1991-1995, I wouldn’t have had the heart.

But it was MY dream... AND we had a great life. Hard work didn’t hurt me at all, and we enjoyed the “fruit of our labors” during the Reagan tax-cut years. I had proved I could start with under $1,000, and simply started over once again in 1994.

A NEW DREAM: There were no handouts, welfare payments, or government interventions when I was in a hospital bed, just back from near-death after the second life-saving blood transfusion in as many years. It was May 1997. I got a call from a literary agent. We had no income, no health insurance, and no job. I had chosen to “start over” in spite of it all. I had a “dream” to write. That dream then and now included making a fine income, and building wealth from my new self-employed risk taking. I had three tubes coming out of my body when I was told I would make a $250,000 “Advance” for The Last Valentine, my first of seven novels. It was hard work and risky to get from bankrupt “bad news” to the hospital bed “good news” where I recieved the welcome phone call. But I had a dream, and have once again benefited from a land that didn’t “spread my wealth around” but allowed me to dream big enough to grow a new business.

THE POINT: “Spreading wealth around” needs to be a private choice and not a “social” experiment run by a government. The character it takes to be self-employed, take no paydays for sometimes months at a time, and build something from just an idea can’t be appreciated by the non-participating “receiver” of my hard earned “wealth.” In fact without hard work the “welfare” recipients put on my payroll by a government mandating my charity expect to not be asked to contribute to my dream and business vitality. Class envy is enevitable when the government decides who should prosper and how and it cannot produce wealth. Such socialism cannot solve budget deficits, cannot provide new value or help someone develop the personal characteristic that fosters profit for a truly wealthy economy and personal life. Taxing wealth cannot produce more of it.

WHAT WORKS: Work works. Hard work, freedom to earn and work at whatever we chose without the fetters of government will solve the present economic crisis.

Capital, Values and CHARACTER: At the end of the day, it’s all about the essence of capital: value and character. The greatest “capital” created in any economy is the personal capital of the American man or woman with a dream. Incentives to better ourselves and personal lifestyles contribute to wealth. The dream begins it, hard work continues it, and the realization of profit takes it to a new level.

THANKS JOE! Your question clarified what America is all about in spite of our politicians inability to do so.

James www.jmpratt.com & www.powerthink.com

YOUR VOTE, 30 DAYS & CONGRESSIONAL "TRICK OR TREAT"

Halloween, Bailout, and the "October Surprise"

I gave up on Halloween costumes and "trick or treating" when my 1965 12 year-old brain told me it was "childish" to hit up homeowners on Christine Ave, Simi Valley, CA. for treats in exchange for playing no "tricks." Yet that is exactly what many supposed leaders of our country and financial institutions have done to stake-holders in the Amercian dream of home ownership for decades... dressed up and played the Halloween games with our future.

How appropriate: Given the momentous "Bailout" (they like the term "Rescue") actions of the present politicos I thought I would share the Wikipedia definition of the Halloween mantra used by children. Here it is:

The "trick" part of "trick or treat" is a threat to play a trick on the "homeowner or his property" if no treat is given. Trick-or-treating is one of the main traditions of Halloween.

It isn't difficult to understand how we got into an economic mess...

"Trick on the homeowner:" Congressional Democrats and Republicans have allowed the mortgage industry to create "entitlement" mentality to "home ownership" for nearly a generation. Documentation, and traditional qualifying requirements have been virtually suspended compared to past generations of borrowers. Mortgages; the "easy money," became "candy" or treats for "votes."

THE CANDY MAN: Both political parties are to blame; creating a sweet tooth public mentality that all people were "entitled" to home ownership regardless of classic and real ability to pay. Now we are on the verge of economic collapse. Banks sit on non-liquid assets. Banks require liquidity to run, lend, keep the engine of commerce alive. Congress created the problem, and now pat themselves on the back for fixing it? (See Sept. 27th Blog - Saving the Economy.)

New Candy Men with October Surprises? In thirty days we can choose between a war-hero seasoned Senator who claims to be a "maverick" or a freshman "community organizer" Senator who hopes we buy into an emotion filled platitude as a substitute to substance; "change we can believe in." Is this your average election year "October Surprise?" or just a coincidental convergence of justice finally catching up to theft, incompetence, and greed 30 days away from America's national election?

Under the Political Rug: When you need to "clean up in a hurry" you sweep the dirt under a rug. You suggest by doing so that you maintain a "clean house." The house isn't clean in Washington. And all parties running are pointing to fellow "House Members." Kind of comforting, huh?...

Not sure there are many "treats" out there, but I'm sure there are plenty of "tricks." Be careful. Be thoughtful. Judge character. Shed emotion and toss out reliance on empty "platitudes" of change. Look under the political rug for what has been swept and hidden there. These people running are experienced politicos and we may be choosing for a lesser of two evils during war and economic crisis. People who helped "create" the crisis are not going to bring "change."

Do the math. Do the homework. Your vote is required in 30 days. Obama or McCain, and other candidates will ask, "Trick or treat?"

God bless America... JMP
www.jmpratt.com